The bankruptcy administration according to Bulgarian commercial law

The bankruptcy proceedings according to the Bulgarian commercial law have there are indispensable bodies of bankruptcy proceedings – the bankruptcy court, the bankruptcy receiver and the creditor’s meeting.

The district court in the district of the creditor has the competence regarding the execution of the bankruptcy proceedings. There are two competences: the resolution regarding the bankruptcy and the supervision of the other bodies of the bankruptcy proceeding’s bodies.

The bankruptcy receiver holds the exclusive function of representation and execution. He acts in favour of the bankruptcy creditors. The law prescribes the bankruptcy receiver to be a legally competent natural person having professional experience of at least 3 years in the field of legal or economical matters. The bankruptcy receiver is appointed by the competent court upon application of the creditor’s meeting. The consent of bankruptcy receiver himself is required as well.

The bankruptcy receiver has the following competences:

  • Representation of the company;
  • Management of the company’s daily operations;
  • Keeping the accounting books;
  • Lodging of complaints;
  • Legal representation;
  • Identification and specification of the bankruptcy creditors;
  • Offering a restructuring plan;
  • Preparing of a report regarding the situation of the trading company as well as the reasons of bankruptcy;
  • Making a list of the creditors.

The bankruptcy receiver is obligated to report to the court.

According to Article 662 of the Commercial Code, the bankruptcy receiver may not:

  • Conclude self-dealing transactions;
  • Acquire objects or rights in rem from the bankruptcy estate;
  • Share information regarding the business operations of the bankruptcy debtor.

The bankruptcy receiver must be paid compensation. A dismissal of the bankruptcy receiver is possible. The district court may impose a fine on the bankruptcy receiver if he does not or only insufficiently meet his obligations.